Undiscovered Gems In India Featuring 3 Promising Small Caps With Strong Fundamentals

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The Indian market has climbed 1.1% over the last week and is up 41% over the past 12 months, with earnings expected to grow by 17% per annum in the coming years. In this thriving environment, identifying small-cap stocks with strong fundamentals can provide promising opportunities for investors seeking growth potential.

Top 10 Undiscovered Gems With Strong Fundamentals In India

Name

Debt To Equity

Revenue Growth

Earnings Growth

Health Rating

Shree Digvijay Cement

0.01%

13.97%

16.37%

★★★★★★

All E Technologies

NA

40.78%

31.63%

★★★★★★

Aeroflex Industries

0.04%

14.69%

33.38%

★★★★★★

Pearl Global Industries

72.24%

19.89%

41.91%

★★★★★☆

Indo Amines

82.32%

17.15%

19.98%

★★★★★☆

Om Infra

13.99%

43.36%

27.66%

★★★★★☆

Network People Services Technologies

0.24%

81.82%

86.35%

★★★★★☆

Piccadily Agro Industries

50.57%

13.86%

42.85%

★★★★★☆

Lotus Chocolate

13.51%

28.10%

-6.06%

★★★★★☆

Abans Holdings

91.77%

13.13%

18.72%

★★★★☆☆

Click here to see the full list of 473 stocks from our Indian Undiscovered Gems With Strong Fundamentals screener.

Below we spotlight a couple of our favorites from our exclusive screener.

Action Construction Equipment

Simply Wall St Value Rating: ★★★★★★

Overview: Action Construction Equipment Limited manufactures and sells material handling and construction equipment primarily in India, with a market cap of ₹160.43 billion.

Operations: ACE generates revenue primarily from its material handling and construction equipment segments, with additional income from agriculture equipment amounting to ₹2.05 billion.

Action Construction Equipment (ACE) has demonstrated impressive financial health, with earnings growing by 76.2% over the past year, significantly outpacing the Machinery industry's 24.8%. The company's debt-to-equity ratio has improved from 18.5% to just 0.4% over five years, indicating strong financial management. Recent news highlights include a substantial order from the Ministry of Defence and an approved final dividend of INR 2 per share for FY2024, showcasing ACE's robust market presence and shareholder value focus.

NSEI:ACE Earnings and Revenue Growth as at Sep 2024
NSEI:ACE Earnings and Revenue Growth as at Sep 2024

IIFL Securities

Simply Wall St Value Rating: ★★★★☆☆

Overview: IIFL Securities Limited offers capital market services in India's primary and secondary markets, with a market cap of ₹102.22 billion.

Operations: IIFL Securities generates revenue primarily from capital market activities (₹20.25 billion) and insurance broking and ancillary services (₹2.77 billion). Facilities and ancillary services contribute an additional ₹375.25 million to the revenue stream.